Grammarly CEO Rahul Roy-Chowdhury on the future of user-centric language tools | E1817

27 Sep 2023 · 1 h 18 min

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In short

Podcast Summary: Grammarly CEO Rahul Roy-Chowdhury on the Future of User-Centric Language Tools | E1817

Podcast Information

  • Title: This Week in Startups
  • Host: Jason Calacanis
  • Guest: Rahul Roy-Chowdhury, CEO of Grammarly
  • Episode Number: 1817
  • Release Date: [Not provided in transcript]
  • Description: Discussion about Grammarly's journey, features, and the future of language tools with a focus on user-centric design.

Key Highlights

Introduction

  • Jason Calacanis introduces Rahul Roy-Chowdhury, expressing his admiration for Grammarly and its impact on writing.
  • Rahul shares insights into his background, including experience with Google Chrome.

Rahul's Journey to Grammarly

  • Background:
  • Started at Google, joining the Chrome team early on.
  • Moved to the U.S. from India to explore opportunities in tech.
  • Transition to Grammarly:
  • Joined Grammarly in 2021, motivated by its mission to improve communication globally.

Grammarly’s Product Features

  • User-Centric Design:
  • Focused on improving user experience and making communication more effective.
  • Offers features that assist with grammar, tone, and clarity.
  • Product Tiers:
  • Free version: Basic grammar and style corrections.
  • Premium version: Advanced writing support, including tone adjustments and engagement suggestions.
  • Grammarly Business: Tailored for enterprises with added collaborative features.

AI Integrations and Future Prospects

  • AI Enhancements:
  • Introduction of Grammarly Go, leveraging AI for generative writing assistance.
  • Focus on improving the entire writing lifecycle, from ideation to comprehension.
  • Competition with AI Tools:
  • Discussion on the rise of generative AI and its implications for writing tools.
  • Grammarly’s strategy to differentiate by enhancing the user experience rather than competing directly with other AI tools.

Trust and Privacy Concerns

  • User Trust Equation:
  • Discusses the Importance of credibility, reliability, intimacy, and self-orientation in building user trust.
  • Emphasis on aligning company incentives with user needs and ensuring data privacy.
  • Concerns about AI and Data Usage:
  • Acknowledges the ongoing discussions around privacy in the context of AI and machine learning.

Conclusion

  • Rahul emphasizes Grammarly's commitment to aiding users in better communication and enhancing their writing skills with innovative tools.
  • Jason encourages listeners to try Grammarly, highlighting its usefulness and efficiency.

Key Takeaways

  • Impact of AI on Writing: AI is not just about generating more content, but enhancing the quality of communication.
  • User-Centric Approach: Grammarly’s success hinges on understanding user needs and continuously improving the experience.
  • Future of Communication Tools: The integration of AI in language tools will transform how users interact with writing and communication platforms.
  • Trust and Transparency: Building trust with users is critical, especially when utilizing AI technologies that process personal data.

Recommendations

  • Try Grammarly's free version and consider upgrading to premium for enhanced features.
  • Leverage the Grammarly Business plan for organizational use, promoting collaboration and consistent communication standards.

Additional Information

  • Follow Rahul Roy-Chowdhury: [Twitter](https://twitter.com/rahulrc)
  • Grammarly Website: Explore different plans and offerings on the [Grammarly website](https://www.grammarly.com).
  • Engage with the Podcast: Follow Jason Calacanis on social media or subscribe to "This Week in Startups" for more insights into tech and startups.

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Transcript

Automatic transcript. May contain errors.

0:00In general, my philosophy of life is, you know, we have limited time on earth to make an impact. Let's just really do things that matter, that create the most possible impact we can have in the time that we have available to us. That's my idea behind Chrome. Let's work on Chrome because we can have a massive impact on the world. And so when I look at Grammarly, I'm like, I love this mission. If we're successful, 10 years from now, 5 years from now, billions of people around the world are using Grammarly to communicate better, to show up better, to have more confidence, to reduce misunderstanding.

0:31That is a worthwhile endeavor. So the mission hooked me in.

1:03Go to for all your legal needs. Learn more at linksquares.com slash twist. And Codecademy. Build the future you want to see with Codecademy. Codecademy Pro helps you learn everything you'll need to shape what comes next in the tech space. Try it free for 14 days. Visit codecademy.com slash twist. All right, everybody. Welcome back to This Week in Startups. I'm really excited because once in a while, you know, I'll have a CEO on the company who I am absolutely a fanboy of their product. And today I am really lucky to have Raul Roy Chowdhury, the CEO of Grammarly on the program. I am addicted to Grammarly.

1:53What is Grammarly, you ask? It is a app that helps you become a better writer. Now, it's called Grammarly, of course, because it fixes your grammar. but oh my lord i can take you to this product roadmap point by point and i as a writer a professional writer somebody who's paid to write and a former journalist i like to have the commas in the right place i like a certain style of writing and i with grammarly can say i want concise writing for intelligent people in a business setting that is motivating and this grammarly tool it gets better and better it follows me around my desktop now and i have a keyboard app what does this mean when you see some of my tweets and you go wow really well constructed tweet storm jcal uh or i like the way you phrase that uh it's because i got grammarly as my over the shoulder editor i have forced everybody in my company to use grammarly two companies uh i think i have about 50 licenses to the product it's not expensive for what it does when you write an email to somebody and it's got a grammatical error in it they judge you and the smarter you are the better your grammar the more professional you are the better you're writing writing is critical now of course we have the age of ai and some people are going to debate this i actually don't think there's any debate i think ai makes grammarly even better so um raul was at google uh and he helped grow uh this little browser you may have heard of google chrome into the world's most used browser and uh he left google in 2021 to join grammarly as the head of product welcome to the program jason first of all that is quite the intro wow yeah you're not gonna get that on another pod i'd say this is this is amazing you should we should clarify to all of your listeners that this is not a paid placement.

3:44Jason loves Grammarly. That's a great advertisement for our products. I appreciate that. It's great to be here, by the way. I think I feel like this is one of the OG tech podcasts. So, it's pretty cool for me to be here. So, thanks for having me. Of course, 1800 episodes and counting now. Amazing. What a great friend. Yeah. Well, I mean, what's great about it is I'm passionate about technology, entrepreneurship and product and uh here we are uh you've you did build i think or manage uh chrome how did you wind up on the chrome team and when did you join that i'm curious yeah yeah uh it's uh it's actually a funny story i um i was at google doing some other projects in the bangalore office and i was looking to find my next gig at google and uh there was chrome it just got started it a pretty small team at the time under a hundred yes um and uh i spoke to the chrome leads sundar was the product leader for chrome at the time there's a guy named linus who's the eng lead and i met them and i was like i love the mission you want to make the web platform better i'm in i love the people i love the team uh let's go do this now the funny thing was uh i was in bangalore My wife was a lawyer in India, not a very transferable skill.

5:05And so I was like, hey, you know, I think we should move back to the US to do this Chrome thing. And she's like, well, okay, what's the job? What is this job that you have that you're so excited about? And the funny thing is when Sundar and I spoke, Sundar, it was a very small team. And Sundar was like, you know, I don't have a job for you per se, but just come over. We'll figure it out. And so I did. I saw I did I was like you know I don't quite know where this is gonna go but I really believe that Chrome is awesome and we're gonna figure it out this is the first time I've had somebody uh who hailed from the the the um India office of Google I think on the program yeah so let's go back a little bit here because it's super fascinating um how did you wind up at I mean I know you're educated here in the states you went to Stanford yeah and you went to uh Columbia but how did you wind up in India?

5:58You know, I grew up in India. Right around the time that I ended up with Google in India, 2007, there was this moment where it felt like India was going to be the big next tech center, lots of innovation happening, lots of interesting things happening. Google was trying to figure out what to do in India at the time. They were like, well, we've got a bunch of product managers in the US, but we don't really know what local conditions are like so are you interested in going to india to figure out what products do we need to build like what what are the needs there and so i thought that sounded pretty cool and that's how i ended up in bangalore yeah and the google presence there i'm guessing it's pretty significant yeah with all the talent there it was it was not huge then it is very different now and the you know the in a nutshell i think we really struggled to figure out how to get breakthrough usage in India back then because it was pre-smartphones.

6:57That's how far back I'm talking. Yeah. So ultimately, access was expensive. It was limited. It was hard to get access to internet services. And Google was doing all sorts of things. At one point, we had a bus, believe it or not, the Google bus that drove from town to town to educate folks on, there's a lot of cool stuff you can do on the internet. Come take a look. Yeah, here's the internet. Here's the internet. So ultimately, smartphones changed everything. But by that time, I was working on Chrome back in Mountain View. So you went to the Indian high school system? I did. Yes. I mean, incredibly competitive.

7:34I was watching this Netflix show about kids who go away, I guess, to this town where they have the like super competitive IT slash math schools. how intense was the education system for you in India it was it was it was intense um but I always that's actually the reason I came to the US I've always had a lot of different interests I like to read I like philosophy I like math I like tech and I really wanted to have the ability to explore all the things I liked and I heard of this idea of liberal arts I hadn't heard of it before and i was like liberal arts that's the thing that really resonates with me that's what i want to do and that's how i ended up in the us they were very supportive and happy yeah yeah but i kind of hear under what you're saying that they kind of push it towards stem a bit uh they feel like that's like the best career path or yeah i think there's limited i mean also keep in mind that back then there were fewer options and so you can have to pick a safe path because there aren't that many opportunities to go around.

8:43So find the path that gets you the most at-bats for that opportunity. Now things are quite different in India, but yeah, that's what led me to the US, liberal arts. And to this day, I just have a lot of different interests. I don't like to get pigeonholed into one thing. All right, everybody. Stephen Estes is a principal at CLA. Clifton Larson Allen is a professional service provider that specializes in CPA, tax consulting, and wealth advisory. three. Welcome to the program, Stephen. Thank you for having me. All right. What is a really simple tax mistake that VC backstarters make all the time?

9:16And how can people avoid that? One of the simpler mistakes is really just in how you structure your company. A lot of companies these days will start doing international operations a lot sooner than they used to. I mean, I think we're all seen with remote work and just it seems like the world is shrinking on a daily basis. We'll set up a subsidiary in India or wherever that particular founder is from. And not understanding how to structure and how to actually do those intercompany operations can result in IP not being in the right area. And when you go to exit and so-and-so wants to pay$500 million for your company, well, they're accountants, right?

9:54Usually big four are going to come in there and tear it to pieces. And if it's found out that the IP that they really want to acquire isn't even in the United States, then that can lead to a lot of issues. So I think it's important for companies just to get good quality advice and understand that the little things that they do today can have massive impacts down the road. Get started right now at claconnect.com slash tech. Let them know your boy, Jake, how I sent you. claconnect.com slash tech to get started right now. And so that leads you back to the United States and you work on the Chrome team.

10:32What an incredible success that was i mean people don't realize at the time how big the mozilla foundation firefox were safari was kicked in internet explorer doing great microsoft yeah bundling everybody bundling how did chrome get that good so fast you know it's interesting uh oh and there it is look at that market share my lord look at chrome unbelievable warms my heart warms my heart I see it flattening after I left Chrome. I think a very simple thing. People should remember that Chrome's success was not preordained. In fact, even inside Google, people were questioning, why does the world need another browser?

11:14We have Internet Explorer. We have Firefox. What's happening? What are you trying to solve here? I remember us celebrating when we hit 1 % market share. That was a huge milestone for us. It's been quite a journey. But to me, the key insight, the reason I was always, I knew that Chrome was going to be successful was that the key insight was the web was moving away from documents to applications. And browsers had not been built to run applications very well. They had been built to render documents. And so the way browsers were dealing with it at the time was, we'll just keep bolting on stuff on top of the existing browser engine.

11:56will make JavaScript a little bit faster. We'll do a couple of things. We'll tweak at the edges. But fundamentally, if you truly believe that, okay, the future of application development is the web, then the logical conclusion is you've got to build a browser that is optimized to run web applications. That was the insight behind Chrome. That's what led to multiprocess architecture. That was one of the key innovations of Chrome. It led to a 10x better JavaScript virtual machine. and so to me it seemed clear that we were years ahead of the game in terms of building an app runtime that is on the web that that's in a nutshell i think what led to our success had to earn a lot of the success you know they have to get people to download it um it's with the exception of android um but you know that they don't they do have the chromium operating system android came much later so in the early days it was you know why should people get chrome And, you know, we didn't have, when you first launched, we didn't have extensions.

12:53And so people are like, well, a browser, no extensions? What is the point of that? So, you know, it was a journey to get to parity, to get people to use it. What do you think of the Chrome OS? I was addicted to that. I had everybody in our company on it. I standardized all our computers on it because it was distraction-free and so affordable. I mean, just$500,$2 ,000 for a desktop and laptop. So I just got everybody desktop, put them on giant monitors. And such a, people loved it. only problem was zoom zoom came along and it was very limited in its support of like video conferencing unfortunately because it did it through the web browser which is kind of an imperfect experience but yeah um i see in schools it's really made progress it's two separate teams i take it or they share a lot of yeah we start it's it's a it's a kind of a long journey but we started out as one team the the reason for chrome os was we have this browser we think the browser is the thing that is the computing experience for most people.

13:50It's a better computing experience. All the stuff outside of the browser is just legacy stuff. What if the only thing you had was the browser? Well, let's build that thing and let's call it Chrome OS. That was the idea behind Chrome OS. It started as a single team. Then through Google's a large company, lots of shakeups and reorganizations, Chrome OS ended up somewhere else. but then eventually came back together. And I think they're still together. It's my knowledge is a bit dated, but I think they're still together as, as a, as a single team now. Yeah. And they, Google actually made a, something called the pixel book.

14:27And man, that was a great computer. The best computer I've ever owned is a pixel book. I love that thing. When it had, people don't know it had like 4g, 5g built into the laptop, which you never see. I don't understand Apple. And I think Dell only has that on like one or two computers. This has got to be standard. Put, cellular into 5g into every laptop it is an amazing experience when you open your laptop and you're on 5g or you can go on to wi-fi but 5g is obviously going to be a little bit more secure i think uh than most wi-fi networks which can be easily compromised so yeah uh what a great computer i mean and a lot of people used it inside of um inside of google yeah inside of google a lot of people used it but it's a very it's a very high price point and so it's kind of a limited or 1500 yeah it was like 1500 bucks or something like that so yeah yeah it was a googler optimized device so yeah i i just love that computer was so slick and easy to use and yeah i like when google makes hardware they have like some certain aesthetic i kind of i kind of like a spartan aesthetic so you must have gotten called by a recruiter or something to come to grammarly and i think the company was when you got there i was doing pretty good it was probably a mid-sized company when you got there you got what year did you get there yeah i got there in 2021 middle of covid and to be clear no one recruiter didn't call me it was a kind of a it's a kind of a serendipitous introduction from a from an investor who's a friend of mine who knows grammarly and i wasn't looking to leave i was actually quite happy at google it's not like i was doing a job search the thing that and i wasn't a grammarly user unlike you i had not used grammarly I felt like my writing is pretty good.

16:05I don't think I need the product. And so this came out of left field. The first thing that really got me was the mission of the company is to improve lives by improving communication. And I just deeply connected with that mission. And in general, my philosophy of life is we have limited time on earth to make an impact. Let's just really do things that matter that create the most possible impact we can have in the time that we have available to us. That's my idea behind Chrome. Let's work on Chrome because we can have a massive impact on the world. When I look at Grammarly, I'm like, I love this mission.

16:40If we're successful 10 years from now, 5 years from now, billions of people around the world are using Grammarly to communicate better, to show up better, to have more confidence, to reduce misunderstanding, that is a worthwhile endeavor. The mission hooked me in. Then I started using the product. I was testing it out. So ironically, my older kid was applying to a private school at the time, middle school. We ended up not going, but I'd written some essays, these parent essays for school applications. And so I'm like, all right, let me try Grammarly on these pieces of writing that I'd spent some time on.

17:15This is not casual writing. And Grammarly made the writing better. And that genuinely surprised me because A, I thought, I'm pretty good. And B, this is not casual writing that I just dashed off. I'd actually spent time on it. And the idea that software could take this carefully considered piece of writing and improve it was really just kind of expanded my mind on what is possible. And then, you know, it's a great company and just wonderful product, wonderful people. So long story short, I went from what is this Grammarly thing to I have high conviction that this is awesome and I'm in, I want in.

17:54And that all happened in the space of a month. And so you took over the company. it's got significant amounts of revenue i know that because it's not cheap it's sat software uh what is it 10 bucks a month 20 bucks a month when you when you buy for your team it depends on it depends on the plan but yeah somewhere between 10 to 15 bucks yeah you gotta get the pro just so people know yeah premium pro really is going to make you a better rider yes thank you yeah i mean there's two versions there's like a entry level version and then there's the pro the main differences there's actually there's actually there's a there's a free version everyone and can download the free version.

18:27That's really optimized for making you sound polished, correct, fixing kind of essential issues around professional sounding text. The premium version, what you call the premium version, which you pay for, that helps you with additional kind of higher leverage types of writing assistance. Things like, what is your tone? And maybe you don't have exactly the right tone. Or can you be more clear? Can you be more succinct? Can you be more engaging in your text? Because maybe you use the same word 10 times in the same paragraph. You pick different words. We kind of look at the more holistic view of your document, and we help you sound more on point.

19:08That's really the essence of premium. Then we also have an enterprise product called Grammarly Business that takes everything that premium has and layers on top teams' value and teams' features as well. So you can collaborate and communicate better in the context of your organization. So those are the tiers of product offer. And it's really nice because, you know, you have a lot of different ways you can use Grammarly. So you have to support many platforms, iPad, iPhone, web. then you have a downloadable tool that sits in your system tray and follows you around the web so that if you're using twitter or you're using slack you get a little bubble that as you type tells you what's going on so when you first start using it you might think hey this is for people writing blog posts but it's really actually when you're typing anywhere and so how do you how many different platforms do people experience because i just named five i think web ipad iphone yeah the system tray i don't know what we call that these days there's a chrome extension and then there's a keyboard there's a lot there's a lot yes off my head um i think you got it all i mean the way to think about it is we have a mobile offering so we have an ios offering um we have an Android offering.

20:34Then for desktop, for both Windows and Mac, we have a browser integration. That's the extension for different browsers. There's one for Safari, one for Chrome. Then we also have a native application, a native application for Windows and a native application for Mac. The difference between the extension and the native app is the native app can see more across your writing surfaces. A very common use case for us at Grammarly, for example, is we use Slack as our messaging app. That's a native application. It's outside the browser. Before we built our native apps, you could use Grammarly inside a web page, but not on Slack.

21:12But now with the native app, you have full coverage. I think it is important because we write a lot. As a data point, the average knowledge worker in the US, and I think you may resonate, I certainly resonate with this. we spend more than 20 hours a week just writing in different surfaces. And so it's probably the biggest activity we do in our work week when you add it all up in all the different places of writing. Messages, documents, social media, news, what have you. There's a ton of information. And so it's important for us that we see everything you're doing so we can give you a consistent experience across all of these apps and surfaces.

21:52I noticed it's getting more consistent. I think that's obviously your probably Google experience of just simplifying stuff and making it faster. Is that a big part of your Google education that if you make it faster and you simplify it, consumption goes up? You know, I think keeping users front and center, that's just a key tenet. Grammarly had it as well. And that's something I certainly learned at Google. So it was not a new thing for Grammarly, but these are lessons we can apply to do things at scale. And so it's easy to lose sight of the user. Like one of the hard lessons I've learned over the years is, you know, you say it's all about the user.

22:30You say things like, put the user first. It seems almost like a platitude. It's like, well, of course, who wouldn't do that? But actually, it's quite easy to lose sight of that. It's quite easy to end up in a bunch of meetings where you're discussing a lot of things and never once do you discuss, well, what does the user need? And that's actually a sign that, you know, we've kind of like gone away from that core tenet. So you actually have to actively keep pulling back to what does the user need? What problem are we solving for the user? and what do you see the problem now because you had the mission statement before which is like in the clouds kind of like um i love that mission statement but okay i i mean say it one more time um improving lives improving lives by improving communication that's our that's so chasing almost all mission statements are way up here 30 000 40 000 feet but yeah most people when they come to a tool they got a tactical problem they want to solve right they got some maybe even strategic but generally people come in tactically yeah because they're embarrassed by the writing or they want maybe they have concerns about it what what drives people to get in here i know students use it a lot i know teachers use it to check for plagiarism i know that was like a beachhead market yeah but what what is the entry point because i noticed you're doing tv now i saw tv ads that's what i know a company is doing really well and that you cross like a hundred million in revenue or something if you're if you're doing tv ads company's got nine figures some revenue.

23:55I'm saying that you're not, but I know you're doing well. How many employees now? It's a big company. We're about a thousand employees now. Yeah. So this is a huge company. What are they all doing? Well, we have a lot of different surfaces, as we just discussed, doing all these things. We're also scaling into the enterprise. So that's something we've been really driving a lot in the last couple of years. And so that's a big point of focus for us in the years ahead. And, you know, we have a lot of users. We need to make sure that we are serving them well when they have support issues they can come to us and talk to a real human so it's a large business we're operating it at scale and so you know uh we have you know it's funny we uh we hit a thousand people recently and we are celebrating this at a town hall meeting inside the company and you'll appreciate this we so i was just kind of joking and saying what what is the collective noun for a thousand grammarians that's we call ourselves grammarians and grammarians like and so So people are like, you know, had all sorts of interesting ideas.

24:53And, you know, it's a witty crew, as you can imagine. We all love words and wordplay. But the winner was, we're a kilogram. A thousand grammallions, a kilogram. A kilogram. I love it. Yeah. All right, everybody. Life for your in-house legal team. Man, it can be so hard chasing down signatures, pouring over contracts. Man, you're toggling between tools. You got to go back and forth with the sales department. It is a brutal job and legal stuff. Let me be honest, that's my least favorite part of my job. But it does not have to be this way. All you have to do is use LynxWares. LynxWares is the first AI powered end to end contract management solution.

25:34It gives your legal and your revenue teams the tools they need to help close sales and to do that faster while delivering a seamless experience for your customers. So create, review, approve, and execute your contracts easily all in one place while prioritizing tasks and integrating with the tools your team already knows and loves. Listen, LinkSquares is where all your legal needs come full circle. Start streamlining your contract management process today and make life for your in-house legal people so much easier with just a few clicks. Learn more at LinkSquares.com. slash twist that's linkswares.com slash twist to start streamlining your contract management process today in terms of the product roadmap yeah i'm curious because as one of your power users yes things i love about it is um you know it will it will rewrite sentences this is something where i think it's super under appreciated um and it also let you set what your goals are in your tone yeah um and it kind of just speed you up with your writing that's all great yeah it does that better than anybody i think that's probably um and then also maybe sounding more confident when you use it so there's consistency and grammar stuff but what i'm sort of getting at like what do people come to the product for and then what do the people stay for what are you finding there if you were to look at those two dynamics and how you think about keeping people from churning out of the product because you do have serious competition now with ai i've heard more than one person say oh that's the end of grammarly you can just cut and paste and throw it into chat gpt and say make this look perfect i don't think those people use grammarly so they don't understand like exactly how it works but let's let's tackle that issue why do people come yeah why do they stay and then hey what impact is you know the ai competition that's out there gonna cause you great question and we should definitely dive into the ai stuff that's super interesting and top of mind as well.

27:41But I think at a high level, we have students as a big segment of our users. They will come into Grammarly because they need help with an assignment. They need help maybe because they're not confident communicators in English and they need an extra pair of eyes. So we hear things from our users. They say things like, I just need an extra pair of eyes looking over my shoulder to make sure that I'm not making mistakes, that I won't get dinged for making an incorrect statement or avoiding things that will get me dinged on my grade, with Grammarly, I feel more confident. That's one reason people come.

28:16We also have a lot of professional users. Professional users have a broader set of things. One reason they come to Grammarly is maybe they need just support with communicating in the right way, especially with remote-first work and distributed teams. There's so much weight on written communication, more now than before. And so maybe you think you sound perfectly fine, but then the person receiving your email says, hey, you sounded kind of rude or abrupt. What's the deal with that? And so there's just more of that now than there was even a few years ago. So people need that extra help to make sure they sound on point, on brand.

28:56And so Grammarly has a lot of features enabling those professional users to help with this new reality of, we're doing a lot of async communication. And so we need to make sure we are showing up in the right way. We're communicating the right information at the right time in the right way. So those are roughly the things that we see in terms of usage. And then with AI, just at a high level, we can talk more about the opportunity with AI, but at a high level, the way I see the problem is communication, there's a lifecycle to it. It's not a point-in-time thing. So a simplified way to think about the life cycle is there's a conception phase or maybe an ideation phase.

29:37There's a composition phase. I'm writing it down. There's a revision phase. I'm polishing it, cleaning it up, making it sound better. And because it's a multiplayer game, there's a comprehension phase at the other end. So I might go through all these phases to write an email to you. You will comprehend my email. Say, okay, what is he saying? Does he need something from me? What's happening? and then you'll go through the phases yourself. So, given that entire lifecycle, Grammarly, up till recently, has focused completely on the revision phase of communication. It's not because we didn't want to cover the entire lifecycle.

30:16We absolutely wanted to. We were trying to find the right way to bring a great product and technology to market that solved that lifecycle. And I think the advancements in foundation models in generative AI is exactly that thing. And so now we're going to go after not just revision, but the entire communication lifecycle. So that's in a nutshell, what we're building our future on. well and this is where i think it would be really great to have multiplayer this is the thing i've been harping y 'all about yes but i'll tell you my workflow yeah we love a product called coda we love a product called notion yeah uh and i still got people on google docs because but we're increasingly i'm banning people from using google docs because i want that information in notion and so i see a collision path between you notion and coda because where this content lives is going to be important now of course you can you don't have to use the grammarly editor because a grammar can come with you and you can use it in notion but watching the feature sets i'll just do a little quick screen share here you and i will use the product live you didn't expect this did you i'm curious to see what's going on well here we go look uh can you see my screen okay i see it yep yep okay great so i just started you know while we're talking here i was like okay let's pretend i'm like a venture capitalist i am yep and i'm gonna write a blog post because i'm trying and get some cloud and get more founders so here i just started hey um i'm gonna start writing it i just wrote this while you you were talking there just three sentences to show and i wrote it kind of how i write which is i just write as fast as i can stream of consciousness because get it out there yeah yeah what i learned from stephen king really great book called on writing you should you should should everybody should read if you're a writer or if you're not a writer just because it's such an incredible it's kind of his biography yeah autobiography and um writing is really just about the rhythm better to write bad stuff than write nothing right and the white empty page is the kryptonite is kryptonite for writers or would-be writers so here yeah i just started this blog post and i wrote i've invested in 400 startups over 10 years comma here's what i look for when i cut the first check into a startup and i purposely wrote it in a kludgy way sure this advice is for startups that are in year zero which typically means a startup consists of a couple of founders and idea and prototype MVP or mockup of a product often a year zero startup isn't even incorporated.

32:35And sometimes they don't have any users or customers. I also write where I also type very fast, but I don't care about like typos. I'd rather go for speed. And it's really great because as you can see here, if you're watching, you know, it will very quickly say, Oh, well, you know, AP style here. If you're and people don't know this, but if you're using the numbers between one and 10 you actually spell them out when you go to 11 that's when you actually put the number so if you're writing the number five you type fie so it corrects that for me i just click it it corrects it um it also thinks this is a run-on sentence so it thinks i should just not use a commish put a period and make the first one into two sentences this is uh and when i wrote this advice is for startups that are in year one it says just take that out it appears that that are maybe unnecessary.

33:20And I get that a lot because I write like I talk and sometimes you're a little bit wordy when you talk. So you can just say if you want, you'd be more concise. Yep. Here, another great suggestion, I've invested in over 400 startups over 10 years. And it wants me to either put a period or a semicolon really nice. And this is for a headline, which it doesn't realize it's a headline that would be actually a good feature is to treat headlines differently. Do you do that? Do you know, we do that. And And by the way, notice also that we not just, we don't give you this just suggestion. We tell you why we're giving you that suggestion.

33:51So you can actually educate yourself and like build your skills over time. Such a good point. This is why I force people to use it. And this is why I need you to make multiplayer mode because I want to see all, and I know that you're probably thinking I have to do all my same. We have multiplayer mode, but we'll talk, we'll get there. We'll get there. Yeah. I need to have three people in this document and I need to see who accepted which change. And I need to be able to have a discussion about each change. like so here where it says hey um there's a spelling error for prototype yep um if we had a see here it says it or mock-up of a product yep um and it says hey the phrase mock-up of a product may be wordy consider changing the wording to a product markup that's such a great suggestion but if we wanted to debate this how great would it be if i could click here and put my comment in and then you raul could say you know what i say we go with a and you i go to go b and you know we have like a little debate here about now I know that this is in the weeds.

34:47But this is what like serious copy editors do. And this would get you the like, when I wrote my book, my editor and I would be having very granular discussions about, you know, hey, is this my voice or you know, whatever? Yeah, I'll just accept some of these other changes here because we're getting repetitive and I put a couple spelling errors on purpose. Let's, let's go back to the product mockup concept because actually, what I'm hearing from all of this is you would benefit from getting Grammarly business for your organization because what Grammarly business layers on top of what we just saw is we can actually add features that do multiplayer things such as for example one of the features is we have this idea of a style guide so you can say for my organization that's exactly what you said for product mock-up so let's say you and your editor have that discussion you're like all right from henceforth this is the rule yes you can actually encapsulate that as a style guide rule and Grammarly supports it.

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35:43We use it inside Grammarly. What does enterprise cost? What does enterprise cost? Tell me the truth. Because nobody ever puts that on their website. Is it on your website? Yeah. Go to the website. You can take a look. There's different ways to... I'm not trying to be cagey here. There's different flavors of it. 20-person organization if I want enterprise. There's a Teams feature that you can try. There's a free trial. So just do the free trial. I'll do it. Yeah. If you like it, give me a team back. But if I pay 10, 15 bucks a month per person, what do I wind up paying net-net? So if I'm paying 15 bucks a person paying what is 180 a year, I have 20 people.

36:12So right now I pay you like four grand a year for Grammarly, which I feel is a pretty good deal, right? I feel like that's a good deal for both of us. If I go to enterprise, what do I add a zero or does it double it? Where would I be? It doesn't double it. It's a slight step up. And it depends on kind of enterprise versus teams. But it's very reasonably priced and you get a lot of extra value because Why don't people just put that on the website, like the exact cost and everything? Because I noticed this with all these, every time I want to go to the enterprise level, people don't put it. Is that because they want to get a salesperson on the phone?

36:41Well, we have two ways to get Grammarly. There's a direct self-serve. That's all on the website. You can just click. There's a plans page. You can go to Grammarly.com slash plans. You see all the prices. And then there's an enterprise sales driven. You could call it a managed go-to-market. it and that usually isn't on the website because you kind of want to understand how wide is how big is the deployment what's it going to take to actually make that company successful so there's more nuance that goes into it it's not it's less about not being transparent and more about it's more bespoke and so we just need to understand what i always wind up doing and everybody in my portfolio 400 companies i've invested in as i said in my little document here if they all just go figure out what is salesforce cost for enterprise and then there's like all these websites now that actually like if you go to what is it g2 captara and some of these places they'll just in the comments they'll tell you what people do everybody knows technology is moving at a blistering pace but code academy's goal is to help you stay a step ahead so whether you have some experience or you're brand new to coding code academy offers everything you need to build the tech career you want gain specialized skills in artificial intelligence full stack engineering data science cybersecurity, and more.

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38:35So start your free trial today. Visit codecademy.com slash twist to try codecademy pro free for 14 days. That's C-O-D-E-C-A-D-E-M-Y.com slash twist. Coachatomy.com slash twist. Can I tell you my single favorite feature of Grammarly? It's not any of the features you showed. It's actually a Grammarly business feature. Okay. Which is, it's a thing called knowledge share. So the idea is, there's so much jargon. Like inside Grammarly, we have project names and acronyms and new people are joining and they're like, what is this thing? Like there's someone who just mentioned this word, whatever it is.

39:14It's like a glossary. So, you know, it exists somewhere. Like maybe there's a wiki page, but I'm reading an email and I'm like, should I stop reading the email, go to the wiki page? I probably should, but I don't because I'm lazy. Yeah. And so. Or you're just in flow. You're just going through your email box. You don't want to get out of your email box. Let's put the positive PS. Exactly. That's the reason. And so with knowledge share, we actually show you what these things are in the flow of your reading and writing. So you can see, what is this thing? I can learn more about it. I can find out who the people are that I can go talk to about it.

39:49And so it's trying to get all of your organizational context built into your writing workflows. And that's a very good idea. The glossary is killer. I know I'm simplifying with glossary, but that's a great idea. And then also people might not know how to capitalize a product name. So you got, you know, some sales folks are just using like a space and, you know, the product name is, you know, Grammarly Go, but we like to capitalize the geo, you know, like, and it's one word, not two, right? So that's what would be in your glossary. And a couple other features here people should know about. When you look at goals, this is where, you know, I really talked to my team about just trying different things.

40:29You know, here it's, it's set at general. but my intent here you know it's really to inform people but i also want to convince them so i'm going to pick both of those and then this is general i'm going to say now general is a pretty good place to start that's the default but you might want to go business and and if you go business um you know it applies more rules right um that and take out some informal expressions yeah that's right just some more professional more polished etc yeah yeah but now I don't like that because I like to be casual and casual this is going to let you have a little more stylistic flexibility you know spread your wings a little bit now of course you can still write whatever you want it's just this is what gives you the suggestions right so this will change how suggestions come into the suggestions correct yes now another great one here how much knowledge does your audience have right this is the empathy for the audience and you know if you have a lot of acronyms and stuff in you know you're talking about the sec or you're talking about you know some obscure topics you say expert um and uh yeah you can um assume a more higher level and then formality neutral is the thing and then so did did i did i explain those correctly you did you did a great job jason i i was going to ask can you are you available to do product this is amazing if you need a pm i'm here yeah okay good to know so those are goals and you know when you're typing uh one of the things i love is on the right hand side kind of gives you a little scorecard in real time and now i already fixed everything in here but if i went in and i just put in a couple of typos and i'll put in three typos for fun you know and it checks everything you know it's going to change some of the correctness and stuff like that and you're going to change your scores but it does give you clarity engagement delivery so you know you can really start to see how you're doing.

42:24And the new feature, you know, so if I click on correctness here, it's gonna just focus on that. But the new thing that you've done is it is a perfect example startups or start dash ups. Yep. Yep. Is grammarly go. Now, this is a very experimental feature. This is your AI feature. And so do you use which language model are using here? we're using right now we're using gpt 3.5 turbo running on azure that's what we're doing right now yeah so here um it's giving you prompts so most people don't know how to do prompt engineering but it can say hey identify any gaps yeah give me ideas to improve uh pick out my main point and this is just a great way to do it providing startup investment advice like it nailed that right like it really does a great job um of figuring out what's in here but you also uh can give people ideas which i think is uh you know give me ideas for improvement that's a really interesting one it's probably going to tell me to add more points uh consider breaking up the text into smaller paragraphs sure try to provide more concrete examples that's a great one uh and consider providing more context around what year zero means for startups this may be unfamiliar terminology.

43:40That's a great one, because I just made up your zero in this context. Yeah, yeah, yeah. So you can see already here, that this grammarly go you call it, but let's just call it your AI. Yeah, it's our generative AI offering to kind of build it on this life cycle is I think what they Yeah, I think co pilot that's what I think I think it's taken. Oh, it's co pilot. Oh, is that trademark? Maybe it's not. But yeah, I think everybody's calling them co-pilots in the industry but you're right get get let get for us it's actually not a different thing it's actually this is what grammarly is it's now solving your entire life cycle it's not a different it's not a different product it's actually part of our offering yeah and then you had this crazy feature uh and i remember this in the early days wow you really have found every single feature we have yes this is a little known feature little known feature you might deprecate at some point i bet but um because i think like it yeah i i'm really interested about this one because there are human editors out there uh and they work from home and they will read something you're doing and um you can have you'll actually have a marketplace of humans to to do this so how and so you can see here it says hey in 24 hours we'll edit this document for four bucks in 12 hours for six bucks and three hours for 12 bucks so it's time-based pricing a little uber surge pricing in here if you want to go faster if you don't care how many what percentage of people actually use this feature because i saw this i was like i don't think anybody uses this but people do use it i mean enough for us to have a pretty strong team of people who are engaged helping users etc so it's not a huge feature it's definitely a power user feature so it's a small percentage but for the people who do really need it it's invaluable so we want to keep it around just for that and it's actually a human gets an alert it's actually a human looking at your text and giving you suggestions on how to make it better just like maybe you have part of the thousand people you have on staff or are these freelancers these are uh they're some of them are on stuff and so it's a mix of uh yeah some to some on stuff and some uh working with us is the reason to offer this since it's like a very you know small percentage overall people using it and to put effort into this is it because this is a way to see what ai and machine learning aren't doing and this is like your reinforcement learning part of the product?

46:04There's a couple of reasons. One is we just have a lot of language expertise in-house. That's actually one of the things that sets us apart is we have a ton of linguists on staff. We are always understanding and evolving the structure of language. And so this is a way for us, A, to provide a great service to our users for the people who care about it. But also, as we're dealing with these really complex, you saw some of these early suggestions on clarity and brevity. Now, the training models that go into that require really deep annotation. The training data that we're using and the annotations we use for that machine learning model is not something you can just kind of give to an untrained person to do.

46:46And so we have our expertise and our linguistic expertise is actually something that enables us to do better training data, better quality input to get better model output. and so that's kind of a part of what we invest in in our solutions this is my uh and the defaults like really matter you can set all your defaults yeah so you know if you want to use you know uh apa whatever oxford commas but i noticed this feature this must have been a little controversial internally you added the woke features you added the like uh let's call it language police for me as a writer and a free speech advocate uh um but for corporate super important because people will you know uh you might have some old people in your organization who use words and pronouns and you know call uh women girls or guys boys and do silly stuff like that but it has sound more diplomatic i turn that right off i'm not diplomatic i like the dictator kind of stuff use gender neutral pronouns avoid uh personal pronouns and academic writing and then there's a long tail ableist language uh bias language uh family gender human rights uh lgbtqia uh race ethnicity politically incorrect language tell me about putting all those features in because i got to think that might have been controversial in some way and then how do you default them Are you defaulting them on for people or off for people?

48:20So the way I think about this is we all communicate differently. We have different styles, different approaches. You have one way, I have a different way. That's what makes communication so difficult, ironically, which is why Grammarly exists. And so what we want to do is give people the tools. We're not here to be prescriptive about how language should be. I don't think that's our job. That's not our role. But you want to make sure that you understand how you're communicating and you're doing it intentionally versus saying, I did this thing. It seemed to have landed like a brick. And I'm not quite sure why.

48:57How come people didn't resonate with what I said or people got upset or whatever? We can help you with that. So we want to make sure you understand the implications of what you're doing. And then you make the choices. As a user, you should decide ultimately how you want to sound. How do you default them? This reflects you and your voice. Actually, I do not know how we default them. Yeah, I was just curious about that. Like, it really is interesting. These things are always changing as well. So this is, I think it's very important in a corporate. Yeah, we keep up to date with the changes too. So it's not like done and dusted.

49:31So this is where our linguistic experts are always tracking, like what is the new thing that happens? So, for example, to take an example from a few years ago, when COVID started spreading, there were lots of disparaging terms being used to refer to COVID. That was a new thing that didn't exist prior to COVID. And so, we were on it. And we were like, look, you may choose to use those terms, but be aware that they are considered disparaging. And so, you can make an informed choice. And that's our job is to inform, but not to police or dictate. Yeah. I mean, the perfect example is homeless. people there's a term now people suffering from people experiencing homelessness is i guess the i guess somewhat comical way to say homeless uh some people would say uh and then handicapped um this is something i learned recently that uh that could be ableist uh to use the word handicapped and so there are some uh words around that so i was just seeing if handicapped actually raised a flag i mean i think it's a good thing because you don't want to hurt anybody's feelings and then i think you're gonna this is where i think enterprise comes in right like you got to really think as an organization if people use that i i had yeah somebody in an organization who kept using the r word uh which is retarded and they were using it um not to say something has changed um in a in a way that's kind of broken or something uh like to refer to a piece of plastic that got belt melted and and yeah whatever uh they were using it as the as a synonym for stupid you know and i had to tell them like you can't say that anymore you know that is like i mean 20 years old but this is where i think like for enterprise yeah you could lose a deal if somebody said like this is a retarded proposal and you know they actually should be saying this is a this proposal could be you know improved or we're being stupid in how we're creating this proposal my view of this is very simple which is that it really comes down to outcomes you're communicating with someone or a group of people you want to communicate as effectively as possible that's a goal and our goal is to help you do that that's what that's our product's objective and so the question is if you're using language that may or may not resonate with people you turn different settings in different ways.

51:55Is that helping you achieve that goal or not? And do the thing that helps you achieve the goal. And we're going to try and help you do that. And, you know, so if someone wants to kind of make a point because they feel like that's kind of their personal brand, but it doesn't help them achieve their goal, that's fine. But I see our job as a piece of software, not as kind of legislators in this country is, let's just help you achieve your goals and we're going to give you everything you need to make sure you can do that. Raul, you passed it perfectly. I gave you the hardest. Even inside of Grammarly, there is a micro controversial question I could ask you and you answered it deftly.

52:37Avoiding unnecessary ellipses. This is one that I have a big fight with Grammarly about and now I see it's on the settings page. I didn't know this was on the setting pages, but I like ellipses. I think many of these settings are born of people having their own fights with different things yeah i have my own like oxford commas yes i don't like oxford commas no but every once in a while but the problem is i turned it off but the problem is every once in a while you really do need it and so i'm like ah what do i do you know this is the this is the beauty and the infuriating piece of just language you know i mean this is this is language you know sometimes it's basically a jump ball you know it's like it's a it's a stylistic decision you might want to use it sometimes you might not want to use it one thing i love is word variety this is something i've always as an editor because i used to be a magazine editor yeah i'd have people use the same word over and over again i'd say you know you've used this word beautiful four times in the last 400 words like you love beautiful like yeah got it like let's move on can we use a different word than beautiful and for people who don't know one of the great features which sometimes doesn't work when I'm going around the web.

53:44Yeah. I find that there's a little bit of stickiness and some UI work to be done on the double click on a word. So here I'm clicking on prototype or incorporated here. So, you know, when you double click, it will give you word suggestions, basically the source, et cetera. And you can see included, contained, mixed, integrated, assimilated, embodied. This is really a powerful feature for folks. It can get them in trouble because it can get too wordy, but grammarly will also tell you if you're getting too wordy and flowery with the language as well but i find this doesn't follow me around the web so maybe you could talk a little bit about the chrome extension versus the one that's in your system tray and then the conflict between those two and like web forms are also problematic they seem to get sticky sometimes um what what should people be using should they be using a chrome extension or the or the desktop tray item now i think people should be using the desktop icon uh the desktop app the native applications because that is the most complete coverage and then the chrome extension could be used for places that you need extra help or the desktop app doesn't cover uh such as google docs is one is one such example what is going on with you guys in google docs superhuman like it seems like a little bit of a war are they is there like some sort of like security thing where they think you're injecting stuff in or are they trying to block you because you're a threat?

55:06No, it's not. None of those things. Google Docs, for example, the issue is the way that Grammarly works is we look at the page, the HTML on the page to understand what the content is, and then we provide our suggestions based on like, okay, you've typed in this bunch of stuff in a text box. We understand what you're doing and here's our set of suggestions. That's our extension. Now, Google Docs moved away from that model to something called Canvas, which you can think of it as they're drawing the text. What you're seeing is not text as an HTML thing. It's like you're drawing the lines and the squiggles that result in characters on the page.

55:45So for extensions... Why are they doing that? There's performance. There's good reasons to do it. There's performance reasons, etc. So that's the reason it's complicated. And that's why we have the extension as well, because there's lots of different technologies. And so ultimately, we want to make sure we understand what users have written so we can give them the right suggestions. And, you know, when Google Docs makes a technical change, and by the way, they love us and we love them. And they worked with us on this transformation. So this is not something that happened overnight. We worked with the Google team.

56:14They said, look, we're going to move to Canvas. Let's help you figure out how to do the navigation so that you don't get affected. And so, you know, we work really well together. Here's another suggestion for you. Yes. I want to be able to go to the New York Times, but I'm reading a story. I know this sounds a little crazy. Okay. When I'm reading a page, like I'm reading my own web page. Yeah. I want to be able to highlight a portion of that page or have Grammarly, you know, like as a browser button, not with the extension, but just, you know, somewhere floating around. And then just right mouse click and say Grammarly this page.

56:46So I could actually run Grammarly against the New York Times I'm reading or against a web page or a press release and see it in the wild. Has anybody else asked for that or am I a lunatic? Fascinating. It's a great idea. I mean, this goes back to this AI is going to now allow us to go from revision, which has been our bread and butter for a long time, to this entire life cycle, including comprehension. I'm reading something, summarize it, make it easier. So maybe we can talk about AI because I think that's something you even bring up. I notice every single person, that little Grammarly Go you're doing, that's in everything now.

57:23Google Docs just added it. Notion has it. Coda has it. It's just everywhere. and people are selling third-party tools yes yes so what is your plan in terms of dealing with let's say the coda notions in google docs of the world who are looking at the success of and saying hey i want some of that yeah so a couple of couple of things first codas and google docs and notions of the world they're not competitors they're we're friends because we are trying to we're not trying to take their surface we're trying to take what is being written in these places and make it better. Yeah, but they're trying to take your surface.

57:56So let's talk about AI and how I think about AI. Okay, so step one is recognize that we as knowledge workers are spending over a half hour work week in written communication. We're drowning in information overload. We're just like across messages, documents, email, social media, news. Oh, my God, just so much information, so much to process. How do I stay on top of it? I don't know about you, but for me, it's a struggle. I've got to really work to kind of stay on top of it. So let's spark that. You all know that to be true. On the other side of the equation, we're like, all right, Gen AI, best thing since sliced bread, amazing.

58:36It's going to change the world, which is true, by the way. I do believe that. Yeah, of course. We agree.

58:43But while there's a lot of uncertainty around how Gen AI will play out, one thing is clear, that the cost of content, the cost of content creation is going to drop to zero or very close to zero because of Gen AI. All right. So on the one hand, we're drowning in content. Isn't it not enough hours in the day to consume all this content? On the other hand, we're super excited about a new capability that lets us create 10x or 100x amount of content. It doesn't add up. Who's going to read all this stuff? Not me. Maybe you will, but I don't have the time to do it. So to me, that's a sign that while generative AI is awesome, it is very early in its deployment lifecycle.

59:27And so step one in the hype cycle is let's just take AI into everything and we just create a bunch more content. But I don't believe that's the right end state of deployment of this tech because, as we discussed, the answer is not like, now read 100 times the stuff you're reading today. That can't be the answer. It's physically impossible. That's why Grammarly comes in because I think what we uniquely can do is we recognize the insight we have is it's not about more content. It's about better. We can see across all of the apps you're writing. We can help you connect the dots across all these different workflows.

1:00:04We understand you. We understand your context, so we can help you communicate in a way that sounds authentic to you that uses the right context to make it more relevant. And then we can bring all of that to bear to help you achieve your goals faster and more effectively and more efficiently than before. So I believe this idea of stitching across all of these workflows, that's our future. That's what we want to enable. That's what we're doing. So if I am bouncing between Twitter, Zendesk, doing my customer support tickets, um i'm using uh you know linkedin and i'm posting updates and blog posts there i'm using twitter i'm using slack obviously i'm using notion coda whatever my sales team's using some other tools uh and we keep talking about i don't know some project we're working on and how we communicate let's say in your case um grammarly enterprise and so in your enterprise you're talking about grammarly enterprise you might the way you explained it to me um have explained it like 100 times this month to people yes now it knows how you explain it as the ceo and then there's a product manager explaining it and then you got the sales team explaining it yes and it could be like hey these are this is actually the best explanation and let's standardize on this one yes exactly i mean so much of what i do is mentally or physically just cutting and pasting context from one place to another.

1:01:29And that's not great. I mean, why? And that's not going to, you know, even if you think about what makes a good enterprise, right, even the words we use, we describe a well functioning company as it's a well oiled machine. Yep. It's a very industrial age metaphor, right? And so we don't need well oiled machines, we need AI enabled enterprises. And so it's not about, let's just think it's a pretty good vision. It's about better. And so that's my vision. yeah i think the vision of um consolidating my writing across all platforms which means you're going to have to ask me for the right to just intercept everything i type or i'm going to have to say put notion coda google docs my email uh and my sales tools and my customer support tools put that into this but don't do my signal i message don't do my passwords don't do last pass or one password and so are you going to have to like kind of get permissions for me as to what to put into the knowledge base and then on an enterprise basis or is this going to roll up into my enterprise as well this is going to roll up into the enterprise and so you know users will have choice they everyone kind of decides how they want to opt in and data permissions etc But he touched upon something really interesting, which is user trust is going to be critical to the effective deployment of AI.

1:02:50So this is something I personally care deeply about. This is something Grammarly cares deeply about. And so I think that is going to be the thing that ultimately would enable the success of this technology broadly. Because at the end of the day, let's say some large enterprise says, all right, I want to use generative AI. I want to transform my business. I want to move from well-oiled machine to AI-enabled enterprise. Guess what? It's not going to happen overnight. It's going to take years to drive that transformation. And so I want to be the person to go to these enterprises to say, we are your trusted partner on this journey.

1:03:25We don't know where the end state is. No one knows. If anyone says, I know exactly how it's going to end, I don't believe you. It's going to be a journey. And so we are your trusted partner on this journey. We've made deep investments in responsible AI, in privacy, in security. and this is something we know how to do and i think it's essential like it's actually essential yeah i think you have the right approach there i think we have to also have a reset on employees especially remote employees and people and their what's their work laptop and what's their private life and i told my team where because we're increasingly recording calls transcribing calls and summarizing calls um and sales teams are doing this with different sales coaching software you've probably seen that yep so i think everybody in business needs to understand your work laptop everything you do on it is going to be recorded eventually um and in some cases some jobs it already is so if you're in finance you know this already because you have compliance um and google probably records everything happening on people laptops and a bunch of those large enterprises do that in a lot of different job functions um and so don't do anything casual on your work laptop and i think you're going to have to have your personal laptop next to you so if you're multitasking during the day which we all do and you're like you know what i i gotta buy something for my kids let me just hop over to amazon you're gonna just have to get into the mode of i'm gonna use the second laptop or i'm gonna use my personal phone for that because everything you're doing because of ai is gonna to be recorded and put into the repository in the database and i was talking to a sales team or talking about sales teams now whoever the best salesperson is their calls are getting recorded um and then put into the sales training software and then you know ai is like examining it whoever the best salesperson was and they know how to get through objections oh you got somebody selling grammarly enterprise and they talk to me and they're like hey yeah it's going to be you know an extra two grand a year or whatever um but you know hey obviously you know if we pick up one mistake and uh we make everybody 10 better pays for itself many times over and we think we can make everybody 5 faster yeah even 20 people 5 faster you're going to recapture that and pays for itself in month one and if that like works that immediately is going to be trickled down to every other sales executive as the greatest way to overcome the increased cost you know uh of you know going to enterprise mode and some size software what are your thoughts on this like the the the way i think a lot of us workers knowledge workers are going to have to start thinking about whatever we do on our laptops is captured and processed and then this change in trust that we're just sort of talking on because people are not talking about this right now well i think yeah i think there's a couple of things going on one is i want to make sure like you know there's this thing that people say that ai is not going to displace people people using ai will displace people not using ai i think that actually yeah explain i think that's true because yeah i believe that you know technology always ends up becoming an instrument for people to do bigger and better things there's always been fear in tech all the way back from the 70s when atms first started getting introduced into the u.s tellers went on strike because they're like oh my god death of the teller uh profession in the u.s none of that happened tellers actually ended up doing more complex yeah uh more interesting jobs yeah and actually the number of bank branches skyrocketed because it was cheaper to open a bank branch with ATMs.

1:07:02So actually, it had the opposite impact than people thought. And tech always surprises on the upside. I'm a tech optimist, and I believe that we should just use tech and harness it to make ourselves better. The thing I have in my soapbox, I don't know if you've seen one of the talks I did, was I wish AI was called augmented intelligence. It's actually so much better. like that artificial intelligence is like it's scary like you know robots killer robots and art in consciousness we want these tools to make us better to augment our skills that's what this is all about and so i really think of this as augmented intelligence and so we should build our products to really enable that to be true and people should see that so as knowledge workers to go to your question i would like knowledge workers not to be feel not to feel like this is something being done to them that this is like they're kind of pawns in this great game and they're powerless.

1:07:54This is about augmenting your skills and your potential. And we as software providers, it's our responsibility to make that true. We can say it, but you got to make it true. So that's a core kind of product development tenet we have at Grammarly to make sure that we don't lose sight of the fact that this is about augmenting people. Yeah. And that's, I'm sure, happening. What do you think about the privacy issues and then all this data being sucked up and then processed against an entire organization versus you know i have my own little island i sit on my laptop my writing my way of doing business and then this sort of collective intelligence my hive mind because now you know you used to have these little fiefdoms inside companies you worked at google you might have seen a couple of them you know little islands of data and best practices for them yeah android people want to do something some way the chrome team wants to do something another way and never the two shall meet or until Sundar comes down and says the two shall meet.

1:08:53So maybe you talk a little bit about that change that's occurring and or even if you I don't know if you've thought about it that much. Yeah, you know, I mean, I think privacy is an ongoing issue. And so there's, there's lots of interesting, like, privacy and user trust can be a bit of a fuzzy concept. It's like a lot of willingness around it. There's this thing called the trust equation, which if you haven't seen, you should take a look at it. It's given me a lot of…it brings rigor to the concept of trust. This is created by some Harvard Business School professors, I think, a couple of decades ago.

1:09:26In a nutshell, trust equals credibility plus reliability plus intimacy divided by self-interest. Credibility is… Am I capable of doing a good job? I tell you that I'm going to keep your data safe, But if I'm not very good at security, I'm not credible. So credibility is you got to have the capability to do a good job. Reliability is what is the promise you're making to your users? And how reliably are you following through and adhering to those promises? You can think of these almost as brand attributes. Exactly. That's the one. Yeah. So trustworthiness equals your credibility plus your reliability plus your intimacy divided by your self-orientation.

1:10:11Correct. Got it. So reliability is, for example, we don't sell user data. We don't do ads. And so that's a core brand promise we make. We're never going to go back on it. We structure the company around making sure that that's never called into question. So that's reliability. Intimacy is about how do you feel? Do you feel like you're in control or do you feel like it's being done to you, something is being done to you? And so that actually requires very deliberate product decisions. Do you just apply a bunch of stuff and tell people that it's done? Or do you have people in the loop so they can actually look at what's going on, make changes, and have agency in the process?

1:10:49I really believe that people should have agency, and so that goes in intimacy. And then self-orientation erodes trust. That's why it's divided by self-orientation because that's a question of to what extent are your incentives and my incentives aligned? am I a pawn in your game am I the product you know all these different things people talk about and so Grammarly for example as just one example of using this is our incentives and our users incentives are 100 % aligned because we make money when people pay for our service that's it that's our only source of income and you lose money if they leave and you lose money if they leave so that's the unsubscribe is such truth in product exactly so that's where I feel like that's where the rubble meets the road is if I look at some product idea or some business idea that causes us to create any sort of daylight between our incentives and our users' incentives, that's a no.

1:11:48Yeah, I mean, you can do Facebook, right? Like you put Facebook into here, people don't feel it's very trustworthy. Exactly. So you have credibility. It's like, they say like, we're not sharing your data all the time and reliability. I think they reliably sell your data and then people feel like the ads are creepy and like too and then intimacy like suckerberg doesn't talk to the user base right and it's like he's never really talks about how they're using your data or protecting you and then when you go try to change your settings uh on your page you're like these settings are made to confuse me as opposed to the grammarly setting page uh where you're like oh this is to enable me the setting pages yes are dark patterns is the term right uh for settings that are like designed to steer you in a certain direction that you don't want to go yeah that's right to unsubscribe yeah exactly it's like i'm giving you this option but i don't really want you to do it that's like you're gonna you're gonna lose right there that's that's a trust losing uh kind of situation i was literally trying to unsubscribe from a newsletter i was paying for on substack and the number of dark patterns like just for the substack team like really i mean so lame i had to click like five times to unsubscribe yeah and they're like you can unsubscribe and it's like from the free newsletters and then it's like no i want to unsubscribe from the paid one obviously and it's like oh that's on a different page and i'm like okay i click that page and then it's like okay this is the page to unsubscribe and then there's a second unsubscribe button i'm like really and like the wall street journal and substack spent all this time trying to build up their credibility to their platforms and then in the final instance i don't trust either of them because how you make me suffer and i went off on uh peloton for this you can't pause your peloton in the app or your tonal you have to call them on the phone and i'm like i can sign up and give you my credit card in the app just i'll take your money yeah but also like pausing like okay i'm away for the summer i'm not going to use my tonal and my peloton for three months it's 50 each a month or something so it's like 300 no yeah just let me pause it for the summer when i'm in tahoe i want to pause it I'm not going to use it.

1:13:57Yeah. And they're like, no, you have to call us on the phone. And then Tonal didn't even let me. They're like, you have to cancel it. I'm like, I don't want to cancel it. I want to use it on September 5th. And no. And so this is super important, the trust equation. Self-orientation, I'm having a hard time understanding that. So self-orientation is exactly like, what is your incentive and what is the user's incentive? So let's look at ads company. I'm trying to get the user to use my product because I'm trying to sell ads and I'm making my money through ads. Now, you may be well-motivated, but your self-orientation is different.

1:14:34It's diverging from your users. And so, it's manageable, but it erodes trust. You've got to be clear that it erodes trust and you've got to be very good at everything else because this is a net negative. In our case at Grammarly, we're like, we don't want anything to ever get in the way of having 100 % alignment between our incentives and our users' incentives. None of this question around, am I the product or why do you have this dark pattern? I need to put this feature in place, but I don't really want you to use it because that's not good for our business. None of that stuff. So it's actually very simplifying.

1:15:09Sometimes you've got to say no to things, but it creates some simplicity and clarity for the path ahead. All right, listen. I can't believe we talked about all the features in Grammarly for over an hour. You did a great job, Jason. You're a great folks person. When you do your user conference, I'll come up and talk about your new features. I will take you up on that. No, it's absolutely great. I can't wait for this vision you have of the AI that is, you know, taking all of my writing and then just organizing it for me in one place and giving me suggestions. I love the idea of the snippets. So we're investors in a company called Superhuman, another role who is obsessed with product.

1:15:48And he's got these snippets in it. So, you know, as an example, a lot of people pitch us to be on the podcast and we don't take pitches. and i get 20 a day and then some people will ask they'll reply 10 times to them and so i ignore the first one but then when the second third fourth one comes in i just hit and it's from like a big pr firm i hit reply yeah and then i hit semicolon s and it puts in thank you so much for thinking about us we actually don't take pitches for the podcast if you could note in your database and remove us uh from your database that would be really appreciated best jacal and you know people take it well they understand yeah this is not it saves you so much time yeah yeah and but i have that in one place i would like my producers to have that i would like to be able to share that with my team so i've been asking raul like hey can we have multiplayer mode in our organization to share that but you know like text is happening all over my desktop if you did it and you said hey here's something that you say all the time yeah do you want to make it into a snippet do you want to make it into a reoccurring you know like we have by the way we have that and so you really You need to check out, you need, we also have snippets.

1:16:54Oh, you do have snippets. So you can do exactly what you're saying and you can have shared with your entire team. So it sounds like you got to go check out Grammarly Business. I'm going to Grammarly Business. I just had everybody buy it for individuals. So we're going, we're going to go up to business. We can help you. Yeah, we can help you. I'm going to do it right after this call. Awesome. No, I'm going to pay for it. I don't need any freebies. Yeah. I like to pay for it. Please do pay for it. Yes. Yeah, no, this is, you know, even when we have like, when I invest in companies or I have advertisers or like, oh, we'll send you something.

1:17:20I'm like, let me just pay for it so that I talk about trust. Yeah, I asked my kid to pay for it. He's like, dad, I'm going to use Grammarly. I'm like, please pay full price. It's valuable. You got to pay for it. Yeah. All right. Listen, I appreciate you. And everybody go try a Grammarly. You'll love it. Just use a free version. Use it for a day and then upgrade to the paid version. I guarantee you, you will love it. And we'll see you all next time on this week in startups. Bye-bye. Thank you.

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Today’s show:

Grammarly CEO Rahul Roy-Chowdhury joins Jason to discuss his journey to CEO (15:28), Grammarly’s product features (26:20), AI integrations (32:28), and much more!

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Time stamps:

(0:00) Grammarly CEO Rahul Roy-Chowdhury joins Jason

(4:19) Rahul's start in tech and his time on the Google Chrome team.

(8:57) CLA - Get started with CLA's CPAs, consultants, and wealth advisors now at https://claconnect.com/tech

(10:24) The Chrome team and Chrome OS

(15:28) Journey to Grammarly CEO

(19:29) Exploring applications and platforms for Grammarly

(25:05) LinkSquares - The go-to for all your legal needs, learn more at https://linksquares.com/twist

(26:20) The product roadmap and what draws people into Grammarly

(35:04) Grammarly's business and enterprise offerings

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(38:53) Product Features: Knowledge Share and Grammarly Goals

(42:28) The addition of Grammarly Go and the LLM powering it

(47:12) Controversial product features

(54:17) When to use the native desktop application and extensions

(57:13) Future integration of AI and the path ahead

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